Biggest risk to CMHC’s mortgage insurance business is a slow-building economic crisis: report warns

  • 📰 nationalpost
  • ⏱ Reading Time:
  • 37 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 18%
  • Publisher: 80%

Nigeria News News

Nigeria Nigeria Latest News,Nigeria Nigeria Headlines

Biggest risk to CMHC’s mortgage insurance business is a slow-moving economic crisis, report warns

A slow-moving economic crisis is the biggest financial risk to Canada Mortgage and Housing Corp.’s mortgage insurance business, according to documents obtained by the Financial Post via an access-to-information request.

The regulator’s supervisory target for a mortgage insurer’s available capital is 150 per cent of its minimum capital required; CMHC’s ratio as of Sept. 30 was 197 per cent.The heavily redacted report outlines the annual dynamic capital adequacy testing of CMHC’s mortgage insurance business.

“Our corporate-wide stress testing and the DCAT results both show we are well capitalized to handle very severe situations,” the spokesperson said. “CMHC develops internal action plans for extreme scenarios, including a slowly developing economic scenario.” “In each case, our testing confirms that our capital holdings are sufficient to weather each of these extreme scenarios,” a press release at the time said.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 10. in NG

Nigeria Nigeria Latest News, Nigeria Nigeria Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Asia stocks decline amid warnings China virus still a threatGlobal stock markets slid Monday after China reported an uptick in new virus cases and analysts warned optimism the disease is under control might be premature.
Source: CTVNews - 🏆 1. / 99 Read more »